What does it cost to join the league of those top crypto investors we see today?
Do they know a little more than we do or they are just lucky? Well, this article will tell us.
The cryptocurrency space has gained huge attentions with the sudden rise and fall of bitcoin since mid 2021 when almost every news platform was taking about cryptocurrencies.
There seems to be so much money in crypto, however people still lose all their money completely when they fall into wrong trades.
So many traders are also taking profits and making huge among of money as daily traders while others are also getting liquidated.
However, the bottom line is that while others are losing, some others are winning.
This makes the market completely decentralized and free from human manipulations.
Therefore, let us quickly discuss a few tips on why crypto investors buy and selloff.
A. When Do Crypto Investors Buy:
So many top crypto investors exhibit these characteristics while trading in the crypto market.
1. Crypto investors buy when the price is low:
Crypto investors are smart enough to buy into projects with low prices.
They look out for crypto project with potentials to hit reasonable price in the nearest future.
They do these when nobody cares to look out for opportunities to amass massive wealth in the crypto space.
2. They buy only when they spot a project with full potentials:
A good investor must be able to carryout analysis on any investment he want to make.
In crypto trading, there are many factors that might tell if a project carries potential.
For instance, what problem is the project solving? Is it a project that solves real life problems?
Will that crypto project eradicate poverty or make the living of mankind better?
These are simple questions to be answered before major crypto investors dive in.
3. Crypto investors buy when they know a token has liquidity:
Liquidity is simply the ease with which an asset or resource can be converted to cash without any negative effect on it’s market price.
Liquidity is very important in crypto trading.
For instance, when an investor chooses to remove his assets from a project he doesn’t want to partake anymore.
If they choose to pull out from any project, how fast will it take for that resource to be converted back to cash.
4. They watch out for trends and study if they are not gonna sell at loss:
Sometimes most crypto project crashes before it even gets started.
That’s where research comes into play.
One good way to study the market trend is through coinmarketcap life crypto market statistics.
Crypto investors are great project researchers.
They make findings to ensure they don’t lose money to trading scams.
5. They buy when other crypto traders are more determined to sell:
Most crypto investors are calculative people.
They don’t just launch out a buy, they buy when other traders see more value in selling off.
Well, this doesn’t mean they also don’t run at losses, it means they don’t trade with emotions.
Hence, most successful crypto investors do not actually follow the crowd.
They only buy when it’s necessary.
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B. When Do Crypto Investors Selloff:
We already know what makes crypto investors buy, lets talk about what makes them sell.
1. When they already made profit:
Successful crypto investors are quick to sell off when they are already at profit.
They selloff when they see at least 20% profit.
Most traders lose so much profits in crypto simply because they want to make more money.
One common thing that makes people lose money in crypto is greed.
Greed makes people not just loose profit but also lose their trading capital.
2. Crypto investors selloff when they sense a major dip coming:
Crypto investors believe it is better to lose a little than much.
To a newbie, “dip” in crypto is a situation where the value of a cryptocurrency is dropping.
If you’ve been a fan of crypto before or you’ve cared to buy before, you might have experienced a dip just after you bought.
In most cases, some traders will tell you not to sell since you bought already before the dip.
However, successful crypto traders don’t mind selling off to rebuy at a more lower price when they see potentials of a return pump.
3. They sell off when regulations might not favor the choice token:
Most times, crypto investors usually sell off to avoid loses.
Even though crypto is said to be regulated, government regulations sometimes influences the decision of traders.
When regulations concerning bans surfaces in some countries, many traders are always quick to sell off.
This is to ensure they don’t loose their choice token or run at loses.
Crypto investors are swift in making favorable selloff decisions.
4. When they sense a massive selloff coming:
Sometimes newbie traders do not sell till they are already running at loss which is not the case for pro-traders.
Most crypto investors sell off as soon as they have realized up to 30 or 50% profit.
Sometimes when a project has gotten more value than expected, a selloff is usually the aftermath.
These selloff are usually initiated to enable them stay at profit and keep carrying on successful investment on other related trades.
5. They sell off when other traders are more convinced to buy:
Just as the wind blows in different directions and you can’t tell where it is coming from or where it is going to so are most crypto investors.
You can’t tell when they want to buy and when they want to sell.
However, past studies have proved that most crypto investors sit comfortably at the selling position when others are buying.
This means they must have bought enough when people weren’t vigilant enough to buy.
Hence, they have the advantage of selling when so many buyers surface at a certain amount of profit.
For instance, buying a commodity at $5 when nobody cared about it then start reselling at $10 when the whole market wants to buy that same commodity.
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